Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
Japan’s petchem supply to last beyond fiscal year: PM
Japan’s petchem supply to last beyond fiscal year: PM
Tokyo, 3 June (Argus) — Japan can maintain supply of its petroleum products, including naphtha-derived chemical products, beyond the current fiscal year that ends in March 2027, prime minister Sanae Takaichi said on 2 June. Takaichi had already declared that Japan can secure stable oil supply beyond March 2027 , but supply of naphtha-derived products had previously been secured only through to the end of this year. Her latest statement extends that outlook. The outlook reflects the ongoing recovery in Japan's naphtha procurement, which has currently risen to around 85pc of normal levels, supported by both domestic refining and alternative imports from regions outside the Middle East. Japan has also boosted imports of intermediates, which has helped limit drawdowns of intermediate stocks in April, Takaichi said. Manufacturers of midstream products such as polyethylene, as well as downstream products — including paints and thinners, polyvinyl chloride (PVC) pipes and insulation materials — have reported that their supply performance up until April has been at the same level as or higher than in the previous year, Takaichi said, adding that they also expect to continue supply going forward. But inventories in the supply chain for paints and thinners remain relatively low. In response, in addition to petrochemical firms' supply and trading firms' imports, refiners will directly supply feedstocks such as toluene and xylene to paint and thinner manufacturers, enabling supply of up to 1.8 times the usual level of demand, according to the government. This arrangement follows domestic distribution bottlenecks for paints and thinners. Because of disruptions to shipments from the Middle East stemming from the US-Iran war, Japan's naphtha imports fell to 710,000t in April , down by 46pc from a year earlier, based on preliminary finance ministry data. Imports in May and June are expected to exceed the April level, supported by efforts to increase alternative imports from the US and other regions outside the Middle East. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Americas Styrenics idles California plant: Correction
Americas Styrenics idles California plant: Correction
Corrects how the company plans to use the plant in paragraph 2. Story originally published on 28 May. Houston, 2 June (Argus) — US polymer producer Americas Styrenics (AmSty) idled its 150,000 metric tonne/yr polystyrene (PS) plant in Torrance, California, in May, according to a source close to the company. The company said it plans to use the plant as a terminal to distribute PS produced at other AmSty sites. The pause in production comes as PS prices have risen by 34pc from a year ago, which another source said has made it difficult for some buyers to pass costs on to their customers. By Jake Caldwell Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US construction spending rises in April
US construction spending rises in April
Houston, 2 June (Argus) — US construction spending inched higher in April from the prior month, new US Census Bureau data show. Total US construction spending was at a seasonally-adjusted annual rate of $2.17 trillion in April, up 0.4pc from March and 0.9pc above year-prior levels. Private residential spending increased by 0.8pc to a seasonally-adjusted annual rate of $910bn in April from March and was up by 1.7pc from a year earlier. Single family residential spending rose by 1.4pc to a $416bn rate in April from the prior month and was down by 2.9pc from a year earlier. Multifamily construction fell by 0.3pc to a $116mn annual rate from the prior month. Private manufacturing spending fell by 1.2pc to $185bn in April from the prior month, continuing a 15-month slide and remaining 18pc below April 2025. The health of the construction sector, especially for residential building, is critical to polyvinyl chloride (PVC) producers who supply much of the pipes, windows, doors, and siding for new homes. Rising inflation and general economic uncertainty are driving would-be buyers away from new homes, especially as mortgage rates remain elevated and the US Federal Reserve may begin hiking its target interest rate by the end of the year, data from CME FedWatch show. Demand this year has remained lackluster, even as homebuilders look to the 21st Century ROAD to Housing Act to ignite demand. The legislation is currently working through Congress. Total construction spending rose in April. Growing year-to-year private residential spending outweighed shrinking nonresidential spending. Public construction spending rose, rising for a fourth consecutive month. Manufacturing spending continues its prolonged contraction. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India’s PE, PP imports dip in March
India’s PE, PP imports dip in March
Mumbai, 25 May (Argus) — India's imports of polyethylene (PE) and polypropylene (PP) dropped in March as supplies from the Middle East fell sharply due to logistics challenges arising from the US-Iran war. India's PE imports fell by 10pc on the year and by 28pc on the month to 136,964t in March, according to customs data from Global Trade Tracker. PP imports slipped by 1.1pc on the year and by 17pc on the month to 140,661t. Shipments from the Middle East — which account for 62pc of India's PE imports and 51pc of PP — fell significantly. The closure of the strait of Hormuz has forced suppliers to reassess logistics, and use alternative routes such as Saudi Arabia's west coast ports of Jeddah and Yanbu, as well as the UAE's Fujairah port, and Oman's Duqm, Sohar and Salalah ports to export cargoes. India's PP imports from the UAE dropped by 49pc on the year to 18,199t in March. PE imports from the UAE fell by over 40pc to 24,759t. Saudi-origin PE cargoes to India declined by 24pc on the year to 18,808t. Saudi-origin PP inflows rose by 27pc on the year to 20,678t but were down by 55pc from February. Steep prices and uncertainty about delivery timings have led some buyers to look to other regions, including China, to meet the shortfall. India imported 17,207t of PP from China in March, almost doubling from 9,239t in March 2025. Chinese polymer exports to India hit an all-time high in April, according to China's customs data. India's overall drop in imports also came at a time when the country's domestic producers cut production after the Indian government asked refiners to divert propane, butene and propylene toward cooking gas production, limiting feedstock availability for petrochemicals. The government cut import duties on petrochemical products to zero in April because of the supply uncertainty. The import duty waiver expires on 30 June. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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